Shares of were trading near record highs when ConocoPhillips (NYSE: COP) started off the new year by announcing that it expected fourth quarter production results to exceed those of the third quarter. But it was good news/bad news for the company this past week.

The good news: The Wall Steet Journal reported that Conoco was now the front-runner to participate in a multiyear, $10 billion project to develop the Shah natural-gas field in Abu Dhabi, beating out such rivals as Occidental Petroleum (NYSE: OXY) and Royal Dutch Shell (NYSE: RDS.A). Abu Dhabi National Oil Co. had been expected to name a partner for the project last year, and oil companies have become frustrated by the delays. Abu Dhabi is trying to meet rising demand for natural gas, which has surged with the building of gas-fired power stations and desalination plants.

The bad news: The company's donation of $5 million to a local cancer center apparently did not impress Alaska state officials sufficiently to allow Conoco to go forward with its nonconforming proposal for a natural gas pipeline project in that state's North Slope. Conoco's proposal had requested that state taxes be fixed on the project for decades, which prompted Governor Sarah Palin to send Conoco a rejection letter. The rejection left TransCanada Corp. (NYSE: TRP) as the sole finalist for the project.

Conoco shares have fallen 5.96% since the beginning of the year, and closed Friday at $83.04.

MOST NOTEWORTHY UPGRADES:

• Brean Murray upgraded Consolidated Water (NASDAQ: CWCO) to Buy from Hold, based on valuation.

MOST NOTEWORTHY DOWNGRADES:

• Magellan Midstream Partners (NYSE: MMP) was downgraded to Neutral from Buy by Goldman Sachs.
• Goldman also downgraded TransCanada (NYSE: TRP) to Neutral from Buy.

MOST NOTEWORTHY: Time Warner Cable (TWC) and Molecular Insight Pharmaceuticals (MIPI) were today's more notable initiations:

• Time Warner Cable (NYSE: TWC) was initiated at Bernstein with an Outperform rating and $46 target, citing a compelling diversification alternative for cable/CMCS investors. Goldman started Time Warner Cable with a Neutral rating and $44 target.

• Molecular Insight Pharmaceuticals Inc (NASDAQ: MIPI) was initiated at RBC with an Outperform rating and $18 target. RBC said Molecular Insight is a leader in developing and commercializing superior radiopharmaceuticals for the treatment and management of life-threatening diseases. Jefferies initiated shares of Molecular Insight with a Buy rating and $20 target, saying Zemiva has blockbuster potential.

OTHER INITIATIONS:

• UBS started Amedisys, Inc (NASDAQ: AMED) with aBuy rating and $39 target.

• Goldman Sachs initiated TransCanada (NYSE: TRP) with a Buy rating.

• Credit Suisse initiated Tim Hortons Inc (NYSE: THI) with an Outperform rating.

• Pacific Growth initiated Ormat Technologies, Inc (NYSE: ORA) with a Buy rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).